An increase in consumer wealth shifts the consumption function downward
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose a perfectly competitive firm is producing 37 units output, and the marginal cost of the 37th unit is $3. If the firm can sell each unit of output for $5 and the firm's revenue is sufficient to cover its variable cost, the firm should:
A. raise its price. B. decrease production. C. lower its price. D. increase production.
What determines the demand for loanable funds and what makes it change?
What will be an ideal response?
Betty won $500 in a poker tournament. She deposits her $500 winnings into a money market fund so that she can use the money next year to help her pay for a trip to Las Vegas. This is an example of money serving as a(n)
A. unit of account. B. medium of exchange. C. investment good. D. store of value.
Suppose that the federal income tax on individuals is set up as follows:Income aboveIncome belowTaxes0$80000.10 × income$8000$35,000$800 + [0.15 × (income - $8000)]$35,000 & up$4850 + [0.25 × (income - $35,000)]Calculate the average tax rate and marginal tax rate for workers with the following levels of income:(a)$6500(b)$27,000(c)$72,000(d)$250,000
What will be an ideal response?